Morning all,

All was going swimmingly last night..apart from the weaker US economic numbers that is on durable goods… then John Kerry stared talking about what the US is going to do to Syria after the chemical attacks…looks increasingly likely that the US and the UK will fire missiles at them to show how serious they take the use of chemical weapons. Markets reacted badly to this move and fell to close 0.4% lower. Reporting season is coming to an end and the market is pregnant with dividends still as the pay-out ratio approaches 70% as companies see no growth and pay shareholders back in spades..good for income seeking punters but does show some issues going forward.

Gold was better last night as was oil as the tension ratcheted up in the Middle East..apparently Saudi Arabia has offered Russia oil in return for abandoning Syria..and there are planes arriving in air bases in Cyprus which is the jumping off point for air strikes…Markets may get more spooked by these events going forward..

Idea of the Day

One of my favourites APN is coming in today to present so will be interested in hearing an update from the horses mouth.Will let you know my thoughts…good to see one of my favourites BDR having a good run yesterday but then all the gold stocks are doing well now that the metal is above $1400…

So what’s my next stock…mmm..well as you know I think 5200 is achieveable but then it gets a bit stretched..the market will lose impetus with the dividends gone..just look at TLS for the evidence…I would continue to look at some insurance or start to take some money off the table as we climb higher…Abbott will romp home..Kev13 will be humiliated and Bill Shorten will get the poisoned chalice as Kev swans off into the sunset with a cushy ambassador job to Mozambique perhaps and all the optimism that the market has been looking at will evaporate as soon a Tony gets his Tap King into his fridge in the lodge and works out what a mess the books are in…ever seen a new CEO that says things are just as I thought …always worse..think if I was  Canberra Civil servant I would be looking for a plan B!

Things to make me go mmmmm…

Chelsea played a Nil Nil draw with Man U

Hard to see the great attraction of Billagone…they managed to rip up $867m on significant items..writing off goodwill and stock..amazing..in years to come there are going to be MBA students studying this one as a text book exercise in what can happen when good management goes bad.Just as well they are being taken over..obviously clearing the decks!!

These guys play hard and it looks like they are working hard too… Stronger sales and improved margins have helped Flight Centre lift its net profit 23 per cent.The travel agency group’s 2012-13 profit was $246 million, up from $200 million the previous year. Revenue was up nine per cent to $1.99 billion.

Boart (really) Longyear confirmed on Monday it has been one of the companies hardest hit by the downturn in mining and exploration activity, posting an interim net loss of $US329 million ($364.38 million). The result was down on the $US98 million net profit reported in the corresponding period last year and included $US315 million in restructuring and impairment charges

Collection House is seeking to raise as much as $15 million in an institutional placement and share purchase plan. The company went into a trading halt on Monday morning as the broker contacted potential investors. Collection House was seeking to raise $10 million in a placement at $1.65 a share. It was to be followed by a $5 million SPP on the same terms.

This will scare a few people in gasland.. Japan has ratcheted up its attack on high Australian LNG prices — hailing US shale gas exports as a game changer that could slash prices by up to 30 per cent — and is inviting industry players to Tokyo next month as it looks to break the traditional LNG pricing model and encourage new supply. An official from the industry ministry said yesterday buying US shale gas was like purchasing from a “supermarket” at true market prices. He said shale gas exports coupled with a coming “boom” in supply had the potential to turn LNG pricing in Asia on its head.

And some food for thought for the bears.. “Price gains of stocks in the Standard & Poor’s 500 Index (SPX) are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since Harry S. Truman was president. The benchmark gauge for U.S. equities has risen 14 % relative to income over the past 12 months to 16 times earnings, according to data compiled by Bloomberg. Valuations last climbed this fast in the final year of the 1990s technology bubble, just before the index began a 49 % tumble. The rally that started in March 2009 has now outlasted the average gain since 1946, the data show.”

Whilst Sydneysiders are stuck in traffic this morning their Portugese counterparts are enjoying empty roads!! Portuguese road-traffic fell 50% in 2012, and a stunning 68% in Q1 2013…and here’s an interesting use of public money in Portugal.. Portugal has 4-times more roadways per-capita than Britain and 60% more than Germany. There are at least nine major motorways that fall notably below the required 10-12,000 vehicles-a-day that ‘justified’ construction.  We’re on the road to nowhere..!

Facebook Inc. (FB)’s market value passed $100 billion amid optimism that the world’s largest social network can bolster sales from mobile advertising. The stock increased 1.9 %to $41.34 at the close in New York. Earlier, it touched $41.94, the highest intraday price since Facebook’s first trading day on May 18, 2012. The shares have advanced 55 % this year.

A US Commerce Department report showed bookings for goods meant to last at least three years decreased 7.3%, the most since August 2012, after a 3.9 % gain in June. Orders waned for aircraft and capital goods such as computers and electrical equipment. So is Tapering off the Agenda again? Who knows..numbers are more volatile than an Italian Football player dribbling into the penalty area..could do anything!!

And finally…thanks to Hans for this gem!

A priest and a rabbi were sitting next to each other on an airplane.

After a while, the priest turned to the rabbi and asked,

Is it still a requirement of your faith that you not eat pork?

The rabbi responded, yes, that is still one of our laws.

The priest then asked, have you ever eaten pork?

To which the rabbi replied, yes, on one occasion I did succumb to temptation and tasted a ham sandwich.

The priest nodded in understanding and went on with his reading.

A while later, the rabbi spoke up and asked the priest, Father, is it still a requirement of your church that you remain celibate?

The priest replied, yes, that is still very much a part of our faith.

The rabbi then asked him, Father, have you ever fallen to the temptations of the flesh?

The priest replied, yes, rabbi, on one occasion I was weak and broke with my faith.

The rabbi nodded understandingly and remained, for about five minutes.

Finally, the rabbi said, beats the hell out of a ham sandwich, doesn’t it?

Have a great day

Clarence

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